The FTSE 100 has reached an all-time high of 8,979 points, bolstered by investor confidence that Donald Trump will retreat from his aggressive tariff threats. The London stock market surged, nearing the symbolic 9,000-point mark and surpassing its previous record of 8,908.
This rally reflects broader optimism across global markets. Traders are betting Trump will either postpone tariffs or strike deals with trade partners, easing fears of a full-blown trade war. These expectations sent shares soaring across sectors, particularly mining.
Major miners like Anglo American, Glencore, and Rio Tinto saw gains of nearly 4%. Rising commodity prices, especially copper and gold, added fuel to the rally, aided by a weaker US dollar.
Despite Trump announcing new tariffs set for August 1st, markets remained upbeat. Analysts attribute this resilience to what they call the Taco trade—a belief that Trump will ultimately pull back, as he has in the past.
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